The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-01-21

l0IGTIeu Ou bhu DN tElGls
Sec. 8. BE IL further enacted, That
the proceeds Of the bonds herein
before authorized TO be iseusd shall, as
fast as realized, DO deposited in bank
to be designated by said Legislative
Council; that said bank shall be first
required to give bond, with satistac-
tory sureties in a penalty TO BE- fixed
by said Council end conditioned for
the faithful discharge OF its duties aud
obligations So the depository OF said
fund; that special account Of eaid
f1nd shall no kept by said bank; that
no part of the same shall be paid out
except for the purpose Of acquiring
properly anu rights of way necessary
10 and for constructing said water
works, including the necessary
buildings, machinery, reservoirs, sand
pipes, water towers, mains, condults,
filters, pipes, etc ami ia order TO in
sure tie fithlul appropriation Of said
fund TO tho purpose of constructing
said water works system, said bank is
prohibited from paying out the same
except upon the orders or checks OF al
least two OF the Fire aud Police Com.
missioners, which orders or checks
shall be given or drawn only upon
bills approved by tho Dis riot Engineer
and by MIN certified to be properly
payable ont of said fluid, But ordefe
OF checks drawn against said fund
by the Fire and Police Commissioners
shall be euiic,eBt vouchers TO said
bank, aud the bank shall not he liable
for the misappropriation or misuse OF
said fund or any part thereof paid out
by 1t ia the manner aforesaid.
A willful vic 'ation OF the provisions
of this section shall be felony, and
upon conviction shall sub gct the
offender to Imprisonment in the Peni-
tentiaIy for not more than two years,
aud shall also render such of 5nder
personally Liable for the amount 20
IN sapprOprialed,
Sec. 10. BE IL further enacted, That
for the purpose Of operating and main
tanning said water works said dis
trlctJ are auth rz d to employ such
officers, engineers, clerks, agents and
employees 40 1t may deem
necessary, whose compensation
shall be fixed by tho Leg slative
Council, and paid out of tho revenues
10 be derived from tho works; aud
said works, both before and after
foreclosure OF said trust deed (should
such foreclosure oConrN shall bs oper.
sted under the general supervising
and governing power OF TAD District
Sec. IL. Be il further enacted, Thai
the rates to be charged to consumers
of the water TO b. supplied by said
system OF water works shall be regu
lated by schedule of rates to be fixed
by an ordinance of said Taxing Dis
trict; that said ordinance may be
changed from time to time by said
District; that tho rates Of charges &c
consumers shall DO regulated 30 that
the income to be derived from said
water works shall, as nearly as prac
ticable, DO sufficient, and no more
than sufficient, to pay the expenses oil
operating, maintaining, extending ant
enlarging the same, to pay the current
interest on said bonGs, and to afford
an aunual sinking fund sufficient To
retire eight Of said bonds by the date
OF their maturity. But said Distrlc
shall have no power, either before oil
after the foreclosure OF said mortgage
(should such foreclosure occur) to rs
duce said rates to produce Teve, III
less than shall be necessary TO the pur
poses aforesaid.
Sec. ~. Be il further enacted, Tha
the police power of said District b,
and the same is hereby extended owe
the entire territory upon which sale
works or any part thereof may be 10
Gated, az il the same was within thu
limit Of Sid District.
Sec. Is. BE il further enacted, That
for the purpose Of carrying out tn,
provisions of this act, said Taxing
District may, il II sees proper, pur
chase the franchises and properties o
any existing water company or any
part thereof, for tho purpose OF incor
poratlng and using the same in thu
system of water works that may b.
adopted and cont usted by said Dis
tTict; such purchase, If made, to b.
paid for ont OF tho proceeds of sale
water bonds, and in tho manner here
in before provided.
Sec. ii. BE IL further enacted That, IL
the event of foreclosure OF sale
mortgage, the purchaser or pur
chasers, their assOciHtes and assigns
may organize themselves into a BODY
corporate, under the provisions o
the general law, chapter Of the Act
of 1885; and 1t shall be ant
remain the duty OF the purch asers
their associates and assigns, and OF tht
corporation tina. may be organized al
aforesaid, to supply said District ant
its inhabitants with water, from thu
source adopted by eaid District, sale
supply to be kept equal, 40 far as nee
eseary, to the capacity OF the system
adopted and constructed by the Dis
triot; and ia such event the annus
amount to DO charged said Diatric
shall not exceed ten per cent. OF tht
aggregate gross income 10 be derived
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